SEBI has introduced new rules for stocks in the Futures and Options (F&O) segment, which could lead to the exclusion of 23 stocks from this category.
Under the new criteria, SEBI has increased the Median Quarter Sigma Order Size (MQSOS) requirement from Rs 25 lakh to Rs 75 lakh.
This means that the average size of orders for a stock must now be higher to remain in the F&O segment.
Additionally, the Market Wide Position Limit (MWPL), which is the maximum number of positions a stock can have, has been raised from Rs 500 crore to Rs 1,500 crore.
Another important change is the increase in the required Average Daily Delivery Value in the cash market from Rs 10 crore to Rs 35 crore. This reflects a significant rise in the stock's daily trading value.
According to SEBI's guidelines, if a stock fails to meet these criteria for three consecutive months, it will be removed from the F&O segment. Once a stock is excluded, no new contracts for it will be issued.
These new rules are largely consistent with a proposal SEBI released earlier, and stock exchanges are now required to adjust their regulations accordingly.
As a result of these changes, 23 stocks are at risk of being excluded from the F&O segment. Some of the stocks that may be affected include Laurus Labs, Ramco Cements, Deepak Nitrite, Atul Ltd, and Torrent Pharmaceuticals.
Other companies that could also face exclusion are Gujarat Gas, Coromandel International, Granules India, Sun TV Network, Syngene International, City Union Bank, GNFC, Can Fin Homes, Bata India, Dr. Lal PathLabs, Abbott India, United Breweries, IPCA Laboratories, Metropolis Healthcare, Indiamart Intermesh, Mahanagar Gas, and JK Cement.
On the brighter side, stocks like Zomato, Adani Green, Jio Financial, DMart, and Tata Technologies might be added to the F&O segment under the new criteria.
